Is Texas Industries, Inc. (TXI) Going to Burn These Hedge Funds? – James Hardie Industries plc (ADR) (JHX), Eagle Materials, Inc. (EXP)

Texas Industries, Inc. (NYSE:TXI) was in 18 hedge funds’ portfolio at the end of December. TXI has experienced an increase in activity from the world’s largest hedge funds lately. There were 10 hedge funds in our database with TXI positions at the end of the previous quarter.

Texas Industries, Inc. (NYSE:TXI)

In the eyes of most investors, hedge funds are assumed to be slow, outdated investment tools of the past. While there are greater than 8000 funds with their doors open today, we hone in on the leaders of this group, close to 450 funds. Most estimates calculate that this group oversees most of the smart money’s total capital, and by monitoring their highest performing stock picks, we have formulated a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Equally as key, optimistic insider trading sentiment is a second way to break down the investments you’re interested in. Obviously, there are lots of motivations for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this strategy if shareholders understand where to look (learn more here).

Consequently, it’s important to take a gander at the recent action surrounding Texas Industries, Inc. (NYSE:TXI).

What have hedge funds been doing with Texas Industries, Inc. (NYSE:TXI)?

Heading into 2013, a total of 18 of the hedge funds we track were long in this stock, a change of 80% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes meaningfully.

Of the funds we track, Mason Hawkins’s Southeastern Asset Management had the biggest position in Texas Industries, Inc. (NYSE:TXI), worth close to $418 million, accounting for 1.8% of its total 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $27.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Chuck Royce’s Royce & Associates, Mario Gabelli’s GAMCO Investors and Andrew Sandler’s Sandler Capital Management.

Consequently, specific money managers have been driving this bullishness. Columbus Circle Investors, managed by Donald Chiboucis, established the most outsized position in Texas Industries, Inc. (NYSE:TXI). Columbus Circle Investors had 27.2 million invested in the company at the end of the quarter. Andrew Sandler’s Sandler Capital Management also initiated a $16.3 million position during the quarter. The following funds were also among the new TXI investors: Drew Cupps’s Cupps Capital Management, Richard Driehaus’s Driehaus Capital, and Thomas A. Giovine’s Giovine Capital.

What do corporate executives and insiders think about Texas Industries, Inc. (NYSE:TXI)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has experienced transactions within the past six months. Over the latest six-month time period, Texas Industries, Inc. (NYSE:TXI) has experienced 2 unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Texas Industries, Inc. (NYSE:TXI). These stocks are CRH PLC (ADR) (NYSE:CRH), Cemex SAB de CV (ADR) (NYSE:CX), James Hardie Industries plc (ADR) (NYSE:JHX), Eagle Materials, Inc. (NYSE:EXP), and Cementos Pacasmayo ADR (NYSE:CPAC). This group of stocks belong to the cement industry and their market caps match TXI’s market cap.

#N/A

#N/A

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
CRH PLC (ADR) (NYSE:CRH) 6 0 0
Cemex SAB de CV (ADR) (NYSE:CX) 28 0 0
James Hardie Industries plc (ADR) (NYSE:JHX) 0 0
Eagle Materials, Inc. (NYSE:EXP) 25 1 13
Cementos Pacasmayo ADR (NYSE:CPAC) 0 0

With the returns demonstrated by the aforementioned research, retail investors must always keep an eye on hedge fund and insider trading activity, and Texas Industries, Inc. (NYSE:TXI) is no exception.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!